Kirin Brewery Business Strategy For 2023

● Refine our brands and human resources, and continue to work on a business strategy centered on building a strong brand system and fostering new growth drivers
● Cultivate mainstay brands and build a strong brand system that will continue to be popular even after this year’s upcoming liquor tax revision
● Implement a comprehensive approach that integrates consumer touchpoints to create a unique craft beer experience in order to sustain a future where beer will remain popular

TOKYO, Friday January 13, 2023 – Kirin Brewery Company, Limited (Kirin Brewery) announced today its business strategy for 2023, the second year of the 2022-2024 Medium-Term Business Plan. Kirin Brewery aims to become a company that continues to nurture deep and long-lasting bonds with consumers by delivering "the joy of connecting with people" - even in a rapidly changing environment. Kirin Brewery will contribute to consumers and society at large by refining its brand and human resources as well as promoting CSV*1 management.
*1 Creating Shared Value. Combined added value for consumers as well as for society at large.

1. 2022 Year in Review

In 2022, while continuing to be affected by the spread of COVID-19, Kirin Brewery estimates that the beer total market resulted in a year-on-year positive growth for the first time in 18 years*2 at 102% year-on-year due to the gradual acceptance of a “new normal” lifestyle and the resumption of economic activity. Kirin Brewery also estimates that the beer market grew significantly by 114% year-on-year - the first year-on-year increase in seven years*2 - due in part to a recovery in consumption at restaurants and bars.

Under the theme of "Refining Brands and Human Resources," Kirin Brewery has strengthened its efforts based on the two strategies of "building a strong brand system" and "fostering new growth drivers." Beer total sales volume (beer, happo-shu, and new genre) were equivalent to 121 million large-bottle (633 ml x 20 bottles) cases (approx. 98% year-on-year). In the beer category, the mainstay KIRIN ICHIBAN and SPRING VALLEY brands led a year-on-year increase of 104%, the second consecutive year of year-on-year growth. The Kirin Hyoketsu® Sugar Free series, which features a "clear, unsweetened taste," grew 165 % year on year by meeting consumer needs. As a result, the Kirin Hyoketsu® brand has recorded record-high sales volume in 2022, more than 20 years after its launch.
*2 Data prior to 2018 is based on taxable shipping volume.

Sales in 2022

Beer total	Beer	Happo-shu (low-malt beer)	New Genre	RTD (canned cocktails)	Whiskey, Spirits and Liqueur	Non-alcoholic beverages
121 million cases (-2.5%)	38.9 million cases (+3.7%)	29 million cases (-5.3%)	53.2 million cases (-5.1%)	72.4 million cases (-3.3%)	25.4 billion yen (+12.5%)	3.6 million cases (-6.9%)

Unit: beer and non-alcoholic beverages 633ml (large bottle) x 20 bottles, RTD 250ml x 24 bottles
*Sales figures are calculated by converting KL (kiloliters) into 10,000 cases and rounding off the first digit.

2. 2023 Initiatives

In 2023, under the theme of "Refining our Brands and Human Resources," Kirin Brewery will continue to work on business strategies centered on “building a strong brand system" and “fostering new growth drivers”, aiming to maximize corporate value. In response to the expected increase in demand for beer, due to the upcoming liquor tax revision(https://www.mof.go.jp/tax_policy/summary/consumption/d08.htm) in October, Kirin Brewery will further strengthen the KIRIN ICHIBAN brand and nurture craft beers to sustain a future where beer will remain popular. Kirin Brewery is aiming for an approximate 10% increase in total beer sales volume over the previous year.

(1) Building a strong brand system

Kirin Brewery will nurture its mainstay brands and build a strong brand system that will continue to be popular even after this year’s liquor tax revision. Kirin Brewery will flexibly respond to changes in the external environment and strengthen its efforts to win the support of consumers in each category. In particular, the flagship KIRIN ICHIBAN will be renewed for the first time in two years. In a time when COVID-19 has diluted the brand, Kirin Brewery will convey a "human connection" through the delicious taste of beer, aiming to create a brand that will be popular with consumers for a long time to come.

(2) Fostering new growth drivers

In the craft beer business, Kirin Brewery will create unique craft beer experiences by implementing a comprehensive approach that integrates consumer touchpoints in order to sustain a future where beer will remain popular. Kirin Brewery will also strengthen its efforts with partner restaurants and bars by utilizing Tap Marché(https://www.tapmarche.jp) in collaboration with partner craft breweries. Kirin Brewery will also establish a quality support system for craft breweries in order to contribute to the further development of the industry as a whole.

SPRING VALLEY Hojun <496> will be renewed to deliver a new beer taste, providing an even more delicious flavor in order to provide more consumers with an exciting beer experience.

Sales targets for 2023

Beer total	Beer	Happo-shu (low-malt beer)	New Genre	RTD (canned cocktails)	Whiskey, Spirits and Liqueur	Non-alcoholic beverages
119.5 million cases (-1.3%)	42.4 million cases (+9.0%)	27.6 million cases (-4.7%)	49.4 million cases (-7.1%)	74 million cases (+2.2%)	26 billion yen (+2.4%)	4.2 million cases (+15.4％)

Unit: beer and non-alcoholic beverages 633ml large bottle x 20 bottles, RTD 250ml x 24 bottles
*Sales figures are calculated by converting KL (kiloliters) into 10,000 cases and rounding off the first digit.

About Kirin Holdings

Kirin Holdings Company, Limited is an international company that operates in the Food & Beverages domain (Food & Beverages businesses), Pharmaceuticals domain (Pharmaceuticals businesses), and Health Science domain (Health Science business), both in Japan and across the globe.

Kirin Holdings can trace its roots to Japan Brewery which was established in 1885. Japan Brewery became Kirin Brewery in 1907. Since then, the company expanded its business with fermentation and biotechnology as its core technologies, and entered the pharmaceutical business in the 1980s, all of which continue to be global growth centers. In 2007, Kirin Holdings was established as a pure holding company and is currently focusing on boosting its Health Science domain.

Under the Kirin Group Vision 2027 (KV 2027), a long-term management plan launched in 2019, the Kirin Group aims to become “A global leader in CSV* creating value across our world of Food & Beverages to Pharmaceuticals.” Going forward, the Kirin Group will continue to leverage its strengths to create both social and economic value through its businesses, with the aim of achieving sustainable growth in corporate value.

*Creating Shared Value. Combined added value for consumers as well as for society at large.